Domain Setup

I need to perform basic failover clustering
1 server needs to be the domain controller
How do I set up a basic domain from scratch
The domain controller machine needs to be able to run two virtualized instances of SQL Server

You should never run VM on a DC. It will cause all sorts of headaches. Create another server for the VM or you will have many issues to deal with later. Other than that here is a link to help further understand the Virtual setup.

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